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EA posts hefty loss, to cut 540 jobs

US videogames giant Electronic Arts reported a hefty quarterly loss on Thursday and said it was cutting six percent of its workforce, or 540 employees.

EA, publisher of such popular titles as Madden NFL Madden NFL is an American football video game series developed by Electronic Arts Tiburon for EA Sports. The game is named after Pro Football Hall of Famer John Madden, a well-known color commentator for NBC Sports and formerly a successful Super Bowl-winning coach during  09, Spore spore, term applied both to a resistant or resting stage occurring among various unicellular organisms (especially bacteria) and to an asexual reproductive cell produced by many unicellular plants and animals and by all plants that undergo an alternation of  and Warhammer Online, reported a net loss of 310 million dollars during the second quarter of its fiscal year compared with a loss of 195 million dollars a year ago.

It said revenue rose to 894 million dollars from 640 million dollars a year ago on strong sales of Madden NFL, Spore, Mercenaries 2: World in Flames World in Flames is a board wargame designed by Harry Rowland and released in 1985 by the Australian Design Group. It is currently in its 7th edition, World in Flames - Final Edition, each new edition featuring changes to the rules, maps and counters provided with the game. , NCAA NCAA
abbr.
National Collegiate Athletic Association
 Football 09, Tiger Woods PGA TOUR Tiger Woods PGA Tour is a series of video games developed and published by Electronic Arts featuring professional golfer Tiger Woods. History
EA has had three golf series in its history:
  • World Tour Golf (1986)
  • PGA Tour series
 09 and Warhammer Online: Age of Reckoning.

The Redwood City, California-based company said revenue at EA Mobile, which publishes games for phones, rose 24 percent to 47 million dollars during the quarter.

EA said the six percent reduction in its 9,000-strong workforce would result in annual pre-tax cost savings of approximately 50 million dollars.

"Considering the slowdown at retail we've seen in October, we are cautious in the short term," EA chief executive John Riccitiello said in a statement.

"Longer term, we are very bullish on the game sector overall and on EA in particular.

"The industry is growing double-digits on the strength of three new game consoles and increases in the number of homes with broadband Internet connections. EA is well-positioned to benefit from these technology drivers."

EA said it expected revenue for the year of between 4.9 billion dollars and 5.15 billion dollars, up 33 percent to 41 percent from the previous year.

EA said Madden NFL 09 was its top-selling title during the quarter, selling 4.5 million copies while SPORE sold two million copies in just three weeks.

It said 1.2 million copies of Warhammer Online: Age of Reckoning were sold in the quarter and 800,000 people were currently playing online.

EA's share price was down 17.81 percent at 22.79 dollars in after-hours trading after-hours trading

The trading of securities after the exchanges are closed. After-hours trading often refers to trading a listed security in the over-the-counter market after the exchanges have been closed for the day.
 in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 following the results announcement.
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Author:AFP
Publication:AFP Global Edition
Date:Oct 30, 2008
Words:324
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